What made NMX (+2,600% in March) one of the top DeFi tokens of 2021

By April 16, 2021DApps
Click here to view original web page at www.cryptopolitan.com
What made NMX (+2,600% in March) one of the top DeFi tokens of 2021 1
What made NMX (+2,600% in March) one of the top DeFi tokens of 2021 1

Nominex leverages the power and profitability of DeFi with the high speeds and low fees of regular centralized trading. The result is an exciting blend of yield farming at 3,000% APY, infinite referral levels, and advanced order types. The price of NMX has rallied by 2,600% since its listing on PancakeSwap – and you can still join the farming.

Centralized vs. decentralized exchanges in 2021

There was a time around 2018 when it seemed like decentralized trading was all but done for. Daily trading volume on DEXes like IDEX and EtherDelta rarely rose beyond $2m, and users didn’t seem all that interested.

And then came DeFi. DApp developers realized that, instead of trying to copy centralized trading on the blockchain, they could create brand-new products. For example, the idea to create a single order book for all DEXes was abandoned – and replaced by automated market-makers like Uniswap, which don’t even have an order book.

If regular exchanges used to mock decentralized platforms in the past, they surely aren’t laughing now. Uniswap, PancakeSwap, SushiSwap, and Curve together clock in over $2.5 billion in trading volume every day, with more than $15bn in liquidity locked in as of March 30. If they were a single centralized exchange, they’d end up in the top-30.

Join them instead of fighting them: the Nominex strategy

Many centralized platforms now offer staking and lending, but these products aren’t really DeFi: you still entrust your money to the exchange. Binance went in the right direction by launching Binance Smart Chain (BSC), but the first centralized exchange that really made the leap into DeFi was Nominex.

This young and dynamic exchange not only launched a real DeFi token on BSC, but also created one of the most versatile and interesting liquidity mining programs in the market.

At the same time, Nominex kept everything that makes it such a good centralized trading platform in the first place: fast trading, advanced order types, extra-low fees, etc. It also preserved its lucrative referral program – the only one in the crypto market to have infinite downline levels and 8 types of rewards.

So how did Nominex succeed where most major exchanges have so far failed? It’s simple: by offering a real DeFi product instead of an imitation.

Liquidity mining on Binance Smart Chain at 3,000% APY

Nominex first issued its native token NMX in 2020 based on the ERC20 standard. Similarly to BNB, it allows a 50% discount on trading fees.

Since February 2021, NMX is also available as a BEP20 asset on Binance Smart Chain. Just two hours after the token was listed on PancakeSwap, the price jumped by 600% from $0.1 to $0.7.

Remarkably for a new DeFi token, NMX didn’t collapse after the first rally but kept growing. As of April 4, it was trading at $2.73, 2,630% above the listing price. This made NMX one of the top-performing DeFi assets of Q1 2021.

This success didn’t pass unnoticed. Nominex was quickly listed by the leading crypto and DeFi aggregators: CoinGecko, BSCscan, DappRadar, and CoinMarketCap.

Why did everyone rush to buy NMX? Because of the extremely profitable – and well-planned – liquidity mining campaign. Nominex takes a very long-term approach, spreading out the reward pool over 72 years. If you start farming NMX now, you could still be mining it in 2093!

The reward pool is extremely large – probably the largest in the industry: 193 million NMX, which at the current price of $2.73 makes $530 million. Out of these, 172m are allocated towards yield farming and 20m are reserved for airdrops. However, the daily distribution slowly decreases, so that there is no hyperinflation. By the way, Binance chose a similar maximum supply for BNB (170.5m BNB), but this didn’t stop BNB from appreciating by more than 800% in 2021.

At the end of March 2021, Nominex paid 6,640 NMX every day, plus 1,330 NMX in bonuses (read on for more info on those).

NMX staking on Binance Smart Chain: fast and with almost no network fees

The decision to roll out NMX yield farming only on Binance Smart Chain, and not on Ethereum, is very telling. BSC is the best blockchain for DeFi liquidity mining, especially for small token holders.

DeFi farmers need to pay the network fee every time they withdraw the accumulated rewards. If you have only $200 worth of tokens locked on a platform like Uniswap, then your daily yield farming reward will be small. Even if you let the payouts accumulate for weeks, chances are the resulting amount will still be less than the current Ethereum mining fee (circa $17). Therefore, it’s very hard for a small liquidity miner to make any net profit.

Things are very different on the Binance Smart Chain. The transaction fee is between $0.01 and $0.05, so farmers can withdraw their rewards as often as they wish without losing any of the profit. The speed is impressive, too: transactions are processed in just a few seconds on BSC.

Binance liquidity, pairs, and features are coming to Nominex

In the very near future, Nominex will join the Binance broker program, unlocking the full functionality of Binance for Nominex users. All the trading pairs and liquidity of Binance will become available on Nominex – together with the better trading terms.

Users will also be able to continue earning on NMX farming and at the same time trade for free on Binance. Trading tournaments and other unique features of Nominex will still be there, but now based on Binance.

What’s more, the users with the maximum partner level on Nominex will benefit from 100% free trading on Nominex / Binance. The maximum level can be obtained through staking liquidity tokens and NMX farming.

Thanks to Nominex’s participation in the Binance broker program, NMX will become even more popular: trading on Binance will simply be more profitable through Nominex. In addition to all the tools of Binance itself, which will migrate to Nominex, new features will appear on the exchange, including semi-automatic trading bots, copy trading, and much more. All this will trigger an increase in demand for NMX from users, pushing the price. This will bring even more possibilities for active farmers and traders.

How to earn over 3,000% with NMX farming

On April 4, Nominex reached a milestone: total liquidity locked in the NMX-USDT pool reached $3 million for the first time. The farming APR (annualized percentage rate) without bonuses was $3,030% (for the up-to-date value, visit the official Nominex Telegram channel). For comparison: the CAKE-BNB pool on PancakeSwap pays 167% a year, LINKBNB pays 203%, while ATOM-BNB yields 234%.

The basic formula for NMX reward distribution is the same as for other DeFi farming projects. Users deposit liquidity in the NMX-USDT pool on PancakeSwap and receive LP (liquidity provider) tokens in return. These LP tokens are then staked in the Nominex dApp. The daily reward pool is divided among the LP farmers according to each one’s share in the staking pool.

However, there are two interesting twists. The first is that when you stake for longer, Nominex pays much more – up to 900% more, in fact. The second twist is that you can also get a rebate on what your referrals earn.

Farming duration bonus

The longer you stake on Nominex, the more you earn. You don’t have to decide on the duration in advance: simply leave your NMX-USDT LP tokens in the pool, and every few days the reward rate will be automatically increased. The coefficients are as follows:

  • more than 7 days: +20% to the bonus reward rate;
  • 15 days or more: +50%;
  • 30+ days: +100%
  • 60+ days: +200%;
  • 90+ days: +300%’
  • 180+ days : +500%;
  • 360+ days: +900%.

Note that it’s the default bonus rate that is boosted, not the total daily reward in NMX: for example, if you earn 10 NMX a day from the main reward pool and 1 NMX as an extra bonus when staking for just a few days, after 30 days you’ll be paid the same 10 NMX plus 2 NMX in bonuses.

Referral bonuses

The referral program on Nominex is different from partner programs on all other exchanges, because it has unlimited referral levels that generate rewards indefinitely. All other exchanges allow just one or two referral levels, and many also limit the duration: for example, on Coinbase you’ll only get rebates for three months on each user you invite.

Having an unlimited downline means that your referral network can grow to include thousands of users. When any of your referrals, no matter how many levels down, invites a new user to Nominex, that new user automatically joins your network, or binary tree (watch video). The tree has 2 users on Level 1, 4 on Level 2, etc.

Nominex’s centralized trading platform has 8 different referral bonuses, depending on how much your referrals trade, how many NMX they buy etc. In addition to this, there are two special referral farming bonuses:

  • Referral farming reward: a rebate on all farming rewards earned by your direct referrals. The bonus rate varies from 5% to 20%, depending on how large your own stake is;
  • Team farming reward: a percentage of the rewards earned by all the users in your network, on all referral levels.

By the way, it’s worth noting that the rewards are credited to the internal wallet on Nominex. If you wish to reinvest the farming profits (i.e. add them to the stake), you’ll first need to withdraw them to a MetaMask wallet.

All the steps of the staking process can be done within the Nominex dApp at https://nominex.io/, which directly interacts with the PancakeSwap contract. This is a valuable option, because using PancakeSwap’s own dApp may not be safe after the recent DNS attack.

Why the 3,000% farming APY will not lead to a price collapse

If you combine all the bonuses, you can earn much more than 3,000% a year framing NMX. In most other DeFi projects, this would almost guarantee a price dump because of hyperinflation, but Nominex is different, because apart from liquidity mining it also offers a lot of value to regular traders.

Here are some of the advantages of trading on Nominex:

  • Very low trading fees – especially if you pay them with NMX. For example, a taker who trades between $100k and $200k worth of crypto a month will pay just 0.05% on each trade (vs. 0.06% on Binance);
  • Profitable referral program: we’ve discussed it already, but we should also add that a successful team leader can earn up to 50,000 USDT a week. It’s also possible to trade for free (zero maker/taker fees) if you reach the top level in the partner program
  • 7 types of trading orders, including the coveted trailing stop order that is missing from Binance;
  • Deep liquidity;
  • TRX staking
  • Withdrawals of up to 3 BTC daily without KYC (only 2 BTC on Binance).

Nominex is also very safe: its smart contracts were audited by Unhash.io, and the audit was supervised by the internationally famous expert Alexey Makeev. You can find the report here. Nominex attracts users thanks to a combination of advanced trading features that even Binance cannot offer and a very lucrative (yet sustainable) yield farming program paying over 3,000% APR. It’s not surprising, then, that NMX has appreciated by 2,600% since listing, and there are good reasons to think that it’s not the limit. To register on Nominex and join liquidity mining, visit https://nominex.io/

Leave a Reply